It is not appropriate to grant another loan to the national airline airBaltic until a clear restructuring plan has been developed, said opposition MP Andris Kulbergs from the United List (AS) in an interview with the Latvian Television programme Rīta panorāma.
He compared airBaltic to a patient who has fallen into deep dependency and is waiting for “another dose.” “Giving another [loan] dose to reach a [fatal] outcome faster is not worthwhile. We need a clear restructuring plan. This dependency has been known for a long time; it did not come out of nowhere. We need to know, as the head of the family, which rehabilitation unit we will place the patient in and what the course of treatment will be,” the opposition politician said figuratively.
Kulbergs acknowledged that airBaltic is like a beloved family member whom people want to care for and save, but in the current situation, another “dose” to stabilise finances could result in “not only the chairs but also the table being taken to the pawnshop.” He stressed that AS wants to see a clear recovery plan from the Prime Minister this week to eliminate dependence on loans.
The MP believes that, given the current situation — mainly due to rising aviation fuel prices — it would be justified to declare a state of emergency in the aviation sector, as this would allow faster progress in “treating” airBaltic.
As reported,
the parliamentary faction of the Union of Greens and Farmers will meet today with Transport Minister Atis Švinka
to decide on its position regarding the granting of a short-term loan to airBaltic, said faction leader Harijs Rokpelnis.
Rokpelnis said after Monday’s coalition meeting that he could not yet provide ZZS’s position, noting that the issue would be reviewed at the government meeting, where additional information would be clarified.
He indicated that this essentially confirms that ZZS’s concerns raised two weeks ago were justified — namely, that the information had not been prepared in a timely and comprehensive manner.
“Now we have limited time to review what the Ministry [of Transport] and airBaltic are changing in their position, what is being presented and improved,” Rokpelnis said, noting that an extraordinary faction meeting will take place on Tuesday, after which ZZS will make a decision.
Meanwhile, Andris Šuvajevs, co-chair of the Progressives and head of its parliamentary faction, said in an interview with Latvian Radio that if ZZS continues to delay its decision on the loan, the Progressives may consider seeking support from opposition factions — AS and the National Alliance — through New Unity (JV).
As previously reported,
New Unity has stated that airBaltic makes an undeniable contribution to Latvia’s economy and society,
and it strongly supports granting a short-term loan to address financial difficulties caused by the sharp rise in aviation fuel prices due to the conflict in the Middle East.
The “Progressives” also support the loan to stabilise the company following the significant increase in fuel costs, which has sharply raised expenses and affected profitability.
Prime Minister Evika Siliņa convened an extraordinary government meeting on Monday to assess the current situation in the aviation sector and at airBaltic.
According to the Ministry of Transport, external factors — the conflict in the Middle East, rising fuel prices, and the suspension of certain routes — have significantly impacted the company’s costs, and
a 30 million euros loan is needed to ensure stable operations until a new business plan is implemented.
However, the parliamentary Budget and Finance (Tax) Committee has not yet approved the government’s decision to grant the 30 million euros short-term loan due to opposition from ZZS. The committee is expected to revisit the issue on the 14th of April.
Last year, airBaltic group turnover increased by 4.2% compared to 2024, reaching 779.344 million euros, while losses amounted to 44.337 million euros — 2.7 times less than in 2024.
The airline carried 5.2 million passengers in 2025, which is 1% more than in 2024.
Last summer, Germany’s national airline Lufthansa became a shareholder in airBaltic. Currently, the Latvian state owns 88.37% of the company, Lufthansa holds 10%, Danish investor Lars Thuesen’s company Aircraft Leasing 1 holds 1.62%, and others hold 0.01%. The company’s share capital is 41.819 million euros.
Following a potential initial public offering (IPO), Lufthansa’s stake will depend on the market price,
but it is expected to retain at least 5%. The Latvian government has agreed to keep at least 25% plus one share after the IPO.
However, due to the 2025 financial results and market conditions, airBaltic has suspended its IPO plans and does not currently consider it a viable source of capital for 2026.
The company’s annual report indicates that despite expected operational improvements, it will operate with negative free cash flow in 2026 and may require an additional €100–150 million to finance operations during the 2026/2027 winter season.
Minister Atis Švinka has stated that an IPO is not the only way to raise capital and that the airline’s management has been given a broad mandate to explore various financial instruments. Thus, the company’s task for 2026 is not only to reduce costs but also to attract new capital.
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